The US central bank's Federal Open Market Committee began a two-day meeting with futures markets betting that it will announce a quarter-percentage-point cut in rates.

That would be on top of a surprise half-point reduction the Fed made on September 18 to its trend-setting federal funds rate for overnight loans between banks and would bring the key rate to 4.5 per cent, its lowest since March 2006.

There was a only a slight doubt in financial markets whether policy-makers would cut rates on, with futures markets pricing in more than a 90 per cent chance for a small reduction. © 2007 Australian Broadcasting Corporation